The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-26

Grounds Upon Which District OF Columbia
Corporations Refuse to Pay.
Washington Special.
The right of State to tax the stock and bonds
OF national banks, in addition TO the tax levied
by the government. has been affirmed by the
Supreme Court OF the United States, and is no
longer a subject Of dispute The national banks
of this District have claimed to be exempt from
this tax on the ground that the District of
Columbia, being under the direct control of the
federal government, had right to levy q
no municipal tax; that they were only subject to
fle United States tax. This point, perhaps has
talued, however, by many eminent jurists that
the District authorities, while they act in con-
cert with the federal authorities, have perfect
eight to impose this tax.
The national government assumes half the
taxes of the District. For every dollar paid in as
taxes to the Treasury to the credit OF the Dis
trict the government adds another dollar. The
Interpretation of the law by the national banks
IL, in effect, that the District governments has
only power TO tax individuals and not corpora
tons What was alleged TO be a test case was
brought by District Attorney Riddle 1.-THE pres
snt incumbent of that Office aud a member of
the old Republican regime) about eight years
ago In a suit against the National Bank of the
Republic. There was no necessity Tor the dis
trict attorney to bring this suit, and according
TO legal presidents 1t was illegal.
The theory that the government is required to
spirit of constitutional law. IF this were not
true the government would soon be involved in
endless amount Of litigation. tax must be
paid on demand by the proper authorities. After
that. il parties think they have been unjustly
taxed they have q remedy in bringing suit to re-
cover the the amount unjustly collected. The
plain duty of District Attorney Riddle in the
of the national banks of the District, in the
Judgment of lawyers, to have demanded the
tax of the banks and lett it to them to test the
legality of the tax.
The District Supreme Court, in the case of
the National Bank of the Republic cited above,
decided against the District. This decision, al
though of the most vital Importance to the
people Of the District involving several mill
ions. Mr.. Riddle accepted as final. and made
effort to take the case to the Supreme Court
of the United STATES where all the precedents of
the decisions bearing this subject in
favor of the District. The act of Congress of
June 80. 1876 says:
"All savings and other banks now organized, or
which shall hereafter be organized in the Dis
trict of Columbia under any act of Congress,
which shall have its capital stock paid up in
whole in part, shall be subject TO all the pro-
visions of the Revised Statutes and of all acts of
Congress applicable to national banking associa-
tIons. far the may be applicable
such savings or other banks; provided, that such
savings banks established shall not be
quired to have paid-in capital exceeding $780,
900.
The District authorities have ample power,
under the law, 10 enforce the payment of this
tax and allow the banks to test the validity of
the tax in the courts.